TN PETRÓLEO

Aurelian Oil & Gas, an exploration and production company, said Tuesday that its wholly owned Romanian subsidiary Aurelian Oil & Gas (Romania) SRL has commenced the drilling of two wells in Romania.

Arbore-1, the second well of a five-well programme operated by Aurelian in its four concessions, EIII-1 (Brodina), EIII-3 (Cuejdiu), EIII-4 (Bacau) and EIV-1 (Suceava), spudded on Friday May 25.

The company said: "It will be a shallow exploration test of the Sarmatian sands which are productive in the Bilca area and nearby in the Todiresti gas field operated by Romgaz.

"The second well spudded also last Friday is Costisa-2, operated by Europa Oil & Gas Limited in the concession EI-3 (Brates), located between Cuejdiu and Bacau in the Eastern Carpathians.

"It was also announced on Thursday May 24 that Aurelian had agreed to farm in to the eastern part of the Brates block. Aurelian will pay a 60% share of the drilling costs (not including testing) of this well to earn a minimum of 6.88% in the east part of Brates.

"Aurelian will also have the option to increase its percentage participation to 27.25% and take over the operatorship of any development operation which arises from the drilling. (These arrangements are subject to any necessary consents to be received from joint venture partners and the Romanian authorities.)

"Costisa-2 is in effect a re-drill of the shallow section of the Costisa-1 well drilled in 2005/2006 and is programmed to evaluate significant hydrocarbon shows which were encountered in that well at around 1,100 metres, but were never tested."

Michael Seymour, Managing Director, said: "We are pleased to be progressing with our operated drilling programme and also our new project entered into yesterday with Europa. We believe the Brates block to be prospective and we are delighted that participation in drilling has been able to get underway so rapidly."